News / Ocean carriers must do their homework before sitting down for contract negotiations

24/01/2018

After five consecutive quarters of contract rate increases it is even more important that shippers do their homework before sitting down with freight carriers, says Chas Deller a consultant with Drewry Supply Chain Advisors.

In a webinar presentation today, the industry veteran offered an insight into bid negotiating with ocean and air freight carriers.

A recent survey of BCOs [beneficial cargo owners] on the transpacific trade found 49% were expecting an increase in Asia to US contract rates this year.

There were five golden rules ...

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chas deller
January 24, 2018 at 3:05 pm
Thanks Mike – Chas

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Oliver Hilgers
January 27, 2018 at 6:52 am
Fully agree to what Chas defines as the 5 golden rules but one imminent rule is missing from my point of view.

Make your company as much valuable as possible.

The concentration in liner biz besides service upgrade and cost efficiency is very much driven by synergy effects.

This leads into the fact that every carrier/alliance getting bigger and bigger. The are loosing the focus on medium sized clients and individual service. Make yourself unique or you will disappear in the big numbers of online booking interfaces.

With more than 25 years experience in BCO direct contracts we have built up one of the strongest BCO network with a unique recognition value and over 100.000 TEU volume on Asia-EU trade. We have prepared ourselves to stabilize our position as an important BCO with reliable and steady volumes.
The bigger the vessels and/or alliance, the higher the MQC, the Prio of market share and utilization factor becomes no. 1 topic, there is only size that matters to be recognized by carrier.

Looking forward to your comments.

Thx Oliver

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